Hawaii's governor has enacted legislation to increase the tax on hotel and vacation rental stays to finance climate change initiatives, including measures for eroding shorelines and wildfire management. This tax is meant to generate approximately $100 million annually for various projects, such as replenishing eroded beaches and creating firebreaks. The new legislation adds a 0.75% increase to the existing room tax, bringing the total tax on accommodations to nearly 19%, and introduces a new tax on cruise ship bills starting in mid-2026. Gov. Green envisions this as a necessary step for adapting to climate challenges, urging other regions to follow suit.
Hawaii's new legislation establishes a tax on hotel and vacation rentals to generate funds for climate change mitigation projects, making it the first of its kind in the U.S.
The measure boosts the existing room tax by 0.75% and introduces an 11% tax on cruise ship bills, collectively reaching nearly a 19% tax rate on accommodations.
Officials estimate that nearly $100 million will be generated annually, aimed at addressing issues stemming from climate change, such as eroding shorelines and wildfires.
Gov. Josh Green emphasizes the need for innovative funding mechanisms to tackle climate crises, suggesting that other states and nations must similarly act to address environmental challenges.
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